https://www.taxtmi.com/caselaws?id=70538 Retrenchment compensation paid after a company resolved to enter voluntary winding up was held not deductible in computing business income. The expenditure was incurred to facilitate an orderly closure of the undertaking and limit liquidation losses, not to carry on the business in the ordinary sense or earn profit. Continued activities during liquidation did not change the character of the payment, because its object remained winding up rather than trade. The payment was therefore not laid out wholly and exclusively for the purpose of business and was disallowed as a business deduction. en-us Mon, 05 Feb 1979 00:00:00 +0530 Sat, 16 Apr 2011 16:23:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70538 Retrenchment compensation paid after a company resolved to enter voluntary winding up was held not deductible in computing business income. The expenditure was incurred to facilitate an orderly closure of the undertaking and limit liquidation losses, not to carry on the business in the ordinary sense or earn profit. Continued activities during liquidation did not change the character of the payment, because its object remained winding up rather than trade. The payment was therefore not laid out wholly and exclusively for the purpose of business and was disallowed as a business deduction. Case-Laws Income Tax Mon, 05 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70538